Token of the Week: ENS

The world wide web is based on fundamental protocols such as the domain name system or DNS. This protocol helps identify websites, webpages, and web tools. In other words, it’s the “https://www…com” system of finding stuff online. 

The decentralized web, or Web3, lacks this system. This creates challenges on ease of use and accessibility has always been the biggest undoing that has derailed blockchain adoption. For instance, long addresses associated with crypto wallets can be confusing and impractical to handle. While computers can read them with ease, humans find them less intuitive. However, Ethereum Name Service (ENS) is looking to change all this.

What is Ethereum Name Service?

Ethereum Name Service is simply a name and look-up service built on the Ethereum blockchain. It was launched in 2017 by Alex Van De Sande and Nick Johnson with the sole aim of simplifying how people display long Ethereum public addresses. The service allows people to translate machine-readable addresses into human-readable addresses.

Consequently, ENS can be envisioned as a nickname generator designed to make crypto more accessible. For instance, if you want to make a payment using cryptocurrency, sharing the Ethereum addresses, which consist of 42 hexadecimal characters is a must. However, with the ENS service, you can convert machine-readable addresses such as 0xPC25DC3T5B8A186998338A2ADA83795FBA2D695E to a simple code that the recipient can understand.

For instance, the long Ethereum address can be converted into a link such as Jake.eth or Example.eth connected directly to a specific public address. Ethereum Name Service makes it easy to connect long public addresses into easy-to-understand and send nicknames.

In addition to Ethereum human-readable addresses, ENS also orders domains for other crypto wallets and metadata.

The ENS Token

ENS is the native token that powers the decentralized protocol. It acts as a governance token whose holders can submit proposals and cast votes to influence the network’s future developments.

Market cap$504M
24-hour volume$89million
Total supply100,000,000 ENS
Circulating supply20,244,862 ENS
All Time High$174

Anyone who has staked sufficient ENS toke can cast votes to vote on future proposals that have the potential to affect how the ENS network operates. Additionally, the token is available to anyone who sets Up an ENS domain name.

To access the token, if, in possession of an ENS domain name, one must first set a Metamask or other wallet then visit the ENS.doman to pay a fee for the domain. From there, one can claim the ENS crypto until 4th May 2022.

Once the period to claim the ENS token elapses, there will be a limited number of ENS tokens in circulation. What this means is that its underlying value will be easy to determine for the long haul.

After surging to more than $170 a coin, ENS token has shed a significant amount of market value having plummeted to about $25 a coin. The sell-off has coincided with an overall correction in the cryptocurrency sector that has also seen flagship cryptocurrencies retreat from record highs as well

Final thoughts

Ethereum Name Service is essentially the web 3.0 version of the centralized Domain Name Service. In contrast, it offers a more decentralized alternative to the traditional DNS, which is always susceptible to the single point of failure.

Unlike other DNSs, it is more secure and resistant to any form of censorship as it is built on top of the blockchain network. Consequently, it stands out as the first service of its kind for crypto and blockchain addresses.

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